Solar panels' green savings

Published 4:07 pm, Friday, July 5, 2013

Erika Schweickert of Capital City Solar in Rocklin, Calif., has seen a surge the past couple of years in customers interested in investing in solar energy systems for their homes.

They're not investing thousands of dollars into solar systems because it's chic to be green; they're doing it because it makes good financial sense.

A solar energy system can significantly reduce — and in some cases eliminate — your monthly electric bills. Photovoltaic, or PV, solar systems, work by converting sunlight that hits solar panels on the roof directly into electricity through an inverter attached to the house.

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Solar systems have become much more affordable in recent years. Photovoltaic prices are determined by watts, with the national average about $3 a watt, nearly half of what it was in 2010. Add to that a 30 percent federal tax credit available for residential solar panel installation good through 2016, plus a variety of rebates and incentives offered from local utilities, and it makes the investment significantly less. Systems can range in price from a few thousand dollars to $50,000 before credits, incentives and rebates kick in, depending on the manufacturer and how many panels are installed.

In most states, homeowners with solar photovoltaic systems can sell back extra energy they don't use to their local utility companies. Called "net metering," customers earn credits for excess solar energy sent to the utility provider's grid from their house. An Indianapolis couple said their bills averaged $20 a month.

With the cost of electricity only rising — Schweickert said California rates are increasing by 6 percent annually — investing in solar panels now is a way of investing in the future.

"Solar kind of hedges against those future rate increases," Schweickert said. "In California, electricity is really pricey, so we really try to get our customers out of those high tiers that tend to go up substantially. We call that 'tier-shaving.' All utilities are a little bit different. We have some customers that eliminate their bills completely on an annual basis."

The number of panels a homeowner needs depends on their energy consumption and the amount of daylight the home receives. Panels should be installed on the south-facing side of the house.

Panels require minimal maintenance. Schweickert recommends an annual cleaning and inspection. Most have 25-year warranties and are designed to last at least that long.

If you're thinking about adding a solar system, be sure to research the products and installers before you invest. Both Schweickert and Crook said quality of the panels can vary greatly, as can the quality of the installer.